Therefore if a body such as the United Nations passes a resolution or

Therefore if a body such as the united nations passes

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being enforced by, national governments and national courts. Therefore if a body such as the United Nations passes a resolution or recommends a particular international treaty it will not be binding on individual nation states unless they adopt the resolution or the treaty under their own laws. International law is therefore imposed and enforced by individual countries making it enforceable in their own jurisdictions. 1.4.3 International Law and Business In its international context business is complicated by many factors - including differences in currencies, language, trading practices and, of course, law. For those involved in international business the difficulties are made worse because, for the reasons discussed above, there is no one ‘international’ law governing business activities that involve people in more than one country. Law governs all business activities BUT the law that applies is the 11
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CO5119:03 Business Law SUBJECT MATERIALS >> SCHOOL OF LAW JAMES COOK UNIVERSITY national law (also called the domestic or municipal law) of one of the countries involved. Therefore, in international business, the most difficult question is often deciding which country's national law is to be applied to a particular situation. International law is generally divided into Private International Law (also known as Conflict of Laws) and Public International Law. Private International Law is part of each country's national law. It deals with the international aspects of dealings involving people from different countries or even between countries themselves. Contracts to export goods are a good example of dealings that are governed by private international law principles. For example, assume that a Japanese seller sells goods to a buyer in Australia and, when they arrive, the goods are in a poor condition. The parties will want to know whether the Australian buyer must still accept and pay for the goods or whether he can reject the goods and refuse to pay the price. It might be that under Japanese law the buyer must accept the goods as they are, but under Australian law the seller must replace them. Since there is no one ‘international law’ which can be used in such situations, the critical question is, ‘which law is to be applied: Japanese or Australian?’ and this is something that the parties should, ideally, have considered when they were negotiating their contract. Unfortunately, there is also no ‘international court’, which can decide such questions, so the problem will be litigated before one of the two country's domestic courts. The law governing such ‘choice of law’ and ‘choice of courts’ decisions is Private International Law. The situation can be complicated even further if the Australian buyer subsequently obtains an order from an Australian court that the Japanese seller must replace the goods. If the seller still refuses to replace the goods, the buyer might have to go to court in Japan to try to get that order enforced. The Japanese court will then have to decide whether it will recognise and enforce the Australian court order. This decision too, is in the domain of Private
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